Breach of Noncompetition Agreement

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WI Court of Appeals – District IV

Case Name: Auto-Chlor System of the Mid-South, LLC, v. Doug Ehlert

Case No.: 2020AP1768

Officials: Blanchard, P.J., Kloppenburg, and Fitzpatrick, JJ.

Focus: Breach of Noncompetition Agreement

Auto-Chlor System of the Mid-West, LLC, sued Doug Ehlert for breach of a noncompetition agreement. Ehlert moved for summary judgment on the ground that the noncompetition agreement is unenforceable. Auto-Chlor agrees that the noncompetition agreement is unenforceable if it is subject to WIS. STAT. § 103.465 (2019-20), which governs noncompetition agreements in employment contracts. Auto-Chlor argues that the circuit court erred in concluding that the noncompetition agreement is subject to § 103.465 and, on that basis, erred in granting summary judgment for Ehlert and dismissing Auto-Chlor’s complaint. Specifically, Auto-Chlor argues that the court erred in determining that the noncompetition agreement by its unambiguous terms required Ehlert to sign the noncompetition agreement as a condition of his employment with Auto-Chlor. We reject Auto-Chlor’s argument and, therefore, affirm.

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Derek A Hawkins is Corporate Counsel, at Salesforce.